Annual report 2018

15 Železiarne Podbrezová a.s. ANNUAL REPORT 2018 In 2018, a supervision audit according to ISO 9001:2015, a recertification audit according to IATF 16949:2016 and a recertification audit according to API Q1 9th edition were performed as part of the quality management system at Železiarne Podbrezová a.s. All audits were successful and we retained our certificates, which showed that the production processes are verified and in compliance with the requirements specified in the relevant standards. We also passed the supervision audits of the environmental management system under EN ISO 14001:2015 and of the occupational safety management system under OHSAS 18001:2007. In 2018, we sold products, goods and services totalling EUR 290 932 thousand to our customers, of which 91% were exported. Revenues increased by EUR 52 319 thousand (21.9%) compared to the previous year, primarily due to higher selling prices of rolled tubes and drawn precision tubes, and a higher sold volume of steel blooms. The geographical structure of sales in 2018 did not change significantly compared to previous years. The main market segment continued to be EUMember States in the following order of importance: Germany, Czech Republic, Poland, Italy, Spain and Slovakia. There were no significant changes compared to previous years as regards the sectors in which our products were used. They are primarily used in the production of machinery and equipment (43-44%), the energy industry (30-38%), hydraulic equipment, oil and gas transportation, and the automotive industry. Changes in total sales by geographical structure (revenues in EUR '000) 2014 2015 2016 2017 2018 Slovakia 30 008 30 293 27 422 26 301 26 140 Czech Republic 41 187 34 741 22 637 31 601 42 963 Other EU Member States 144 671 137 014 122 278 156 718 193 156 Other European countries 11 366 9 024 10 586 13 471 17 008 U.S.A. 8 925 6 484 5 058 8 523 11 053 Other export 4 054 4 180 1 815 1 999 612 Total sales 240 211 221 736 189 796 238 613 290 932 Application of tubes in 2018 Seamless hot-rolled tubes Precision seamless cold-drawn tubes 38% 14% 3% 1% 44% POWER GENERATION Mechanical engineering Power generation Transport of flammable media Construction industry Other sectors 30% 13% 11% 3% 43% POWER GENERATION Mechanical engineering Power generation Hydraulics & pneumatics Automotive industry Other sectors REPORT BY THE BOARD OF DIRECTORS ON BUSINESS ACTIVITIES, ASSETS, AND FINANCIAL PERFORMANCE IN 2018 AND INFORMATIONON THE BUSINESS PLAN